Rebus sic stantibus

Rebus sic stantibus, Latin for “as matters now stand”, is a clause in contract law that permits the parties to modify or terminate an agreement where fundamental circumstances change that were not foreseeable at the time the contract was concluded and that render performance unreasonable.

The principle is relevant because it prevents parties from remaining indefinitely bound to an agreement that unforeseen events—such as an economic crisis or a natural disaster—have rendered impossible or disproportionately burdensome to perform. It operates as an exception to the principle of pacta sunt servanda.

In Dutch practice the courts apply the principle with restraint, typically in long-term contracts such as leases or supply agreements, and only where the changed circumstances are not attributable to the party seeking relief.